German Energy Efficiency Law Sets Ambitious Goals

The Energy Efficiency Law (EnEfG) fulfills a mandate from the European Union’s Energy Efficiency Directive, requiring energy savings of 11.7 percent, or around 1.5 percent a year, by 2030. It now goes to Germany’s parliament for ratification.

“Together we must all significantly and permanently reduce energy consumption in Germany,” said German Minister for Economic Affairs and Climate Action Robert Habeck in a statement.

He added with reference to initial energy concerns following Russia’s war against Ukraine: “We showed last year that this was possible. With this new law, we are now creating a clear framework. The public sector must continue to lead by example.”

The draft legislation sets a binding target of a 550-terawatt-hour reduction of final energy consumption compared to 2008 levels by the end of this decade, with Germany’s national and regional governments directly responsible for a 50-terawatt-hour cut. The public sector will be expected to cut energy consumption by two percent a year. By comparison, Germany consumed 2,407 terawatt hours of energy in 2021 according to the German Environment Agency.

The legislation requires all companies with an annual energy consumption of more than 15 gigawatt hours a year to introduce energy management systems and draw up concrete, publicly accessible energy efficiency measures. Specifics of the measures will be left up to the companies themselves.

In addition, data centers will have to fulfill energy-efficiency standards and use the heat they generate. Industrial waste heat is to be generally avoided or, when unavoidable, be put to use.

“Energy efficiency is one of the most exciting and dynamic sectors in Germany right now,” says Germany Trade & Invest (GTAI) CEO Robert Hermann. “The new Energy Efficiency Law adds further momentum to the changes that are already going on in Germany society and the German economy. It’s hard to think of a better time than now for international energy-efficiency companies to expand to Europe’s largest economy.”

Germany Trade & Invest (GTAI) is the economic promotion agency of the Federal Republic of Germany. GTAI supports German companies setting up in foreign markets, promotes Germany as a business location and assists foreign companies setting up shop in Germany.